Business Services Industry

Enterprise IT Budgets to Increase Average of 2.7% Over Next 6 to 12 Months, According to New Aberdeen Report

Business Wire, March 10, 2003

Business Editors/High-Tech Writers

BOSTON--(BUSINESS WIRE)--March 10, 2003

Quarterly Survey of CIOs Identifies IT Spending Intentions and

Priorities, Forecasts Rate of Industry Recovery

Enterprises are expected to increase their technology budgets by an average of 2.7% over the next 6 to 12 months, according to a recent survey of CIOs and other IT purchasing decision makers. This survey was performed by Aberdeen Group, a leading market analysis and positioning services firm. In a similar survey last September, CIOs indicated their overall IT budgets would increase on average 3.7% over the next 6 to 12 months.

The survey data are highlighted in a new Aberdeen report, Technology Forecasting Consortium: 2003 User Buying Intentions, which is based on a recurring survey of IT executives in the Technology Forecasting Consortium (TFC). The TFC is Aberdeen's end-user advisory council that assists in the early identification of trends in the IT market and the prediction of user buying intentions.

In the most recent survey conducted in January 2003, CIOs identified their "intent to purchase" and "priority of purchase" for application software, technology infrastructure, hardware, and services.

"The survey results show that IT spending growth will continue to be slow and incremental over the next 6 to 12 months," said Hugh Bishop, Aberdeen Senior Vice President and author of the new report. "This data is in line with Aberdeen's forecast that worldwide IT spending will increase approximately 4% in 2003 and is closely tied to GDP in capital spending metrics."

Key findings of Technology Forecasting Consortium: 2003 User Buying Intentions include:

-- The top five application categories (out of 35) with a positive intent to purchase are content/document management applications; query/reporting/analysis; project management; Web management applications; and Web analytics.

-- Compared to the September survey, the average intent to purchase for all 35 application categories combined increased, while the average priority to purchase decreased over the same time frame. Aberdeen's analysis of this data is that more organizations are considering new application purchases but have yet to move into formal evaluation or purchasing processes. This is a potential early indicator of a recovery in the business application sector.

-- The top three technology infrastructure solutions with a positive intent to purchase are application development tools; security gateways and services; and enterprise application integration software.

-- With the exception of mainframes, CIOs expect to increase spending in all hardware categories during 2003. The most optimistic forecast is that for servers.

-- IT outsourcing was the winner among services offerings with 1.8% expected growth.

This new report is available on www.aberdeen.com in two formats. An abridged version is available at no charge and the full report -- with complete survey results -- is available for $495. For more information call 800-577-7891, visit www.aberdeen.com or go to the following Web page:

http://www.aberdeen.com/ab_company/hottopics/tfc2003/default.htm

About Aberdeen

Founded in 1988, Aberdeen Group is a leading IT market analysis and positioning services firm that helps Information Technology vendors establish leadership in emerging markets. The firm provides IT market intelligence, positioning, and market acceleration services to established and start-up technology companies.

Aberdeen's consultants provide up-to-the-minute global IT market insights in more than 25 IT market segments. Research practices focus on emerging market opportunities, market growth rates, important industry trends, and customer buying patterns. The firm also helps clients to identify new market opportunities, enter those markets successfully, and accelerate the adoption of new technologies.

Headquartered in Boston, Massachusetts, Aberdeen has research and consulting divisions in Palo Alto, CA and Fort Collins, CO. Aberdeen is accessible via the Web at http://www.aberdeen.com/.>